1. The Average Cadillac Buyer In China Is 15 Years Younger Than In The United States

The sales pool may be smaller, but there’s a pattern that points to Chinese buyers being on a more favorable side of age than in the United States. As Cadillac pushes for growth globally and expands its portfolio, it may lean on China as a result going forward.

This is a good thing. As ATP and profit margins tend to correlate. The fact that ATP for the entire Cadillac brand has jumped a full $7,000 from October 2014 to October 2015 speaks a bit about what customers are willing to spend as a whole on a Cadillac model. Maybe its pricing strategy isn’t so bad after all.

Also, despite contrary reports you may hear or read about, Leone notes that plenty of Generation X and Y buyers are ponying up the funds required to purchase a Cadillac, not just wealthier-as-whole Baby Boomers. An interesting note to go with it all is Cadillac is finding that the younger generations may not have much money saved up as the elder Boomers, but it hasn’t stopped them from indulging. This phenomenon is said to be in all markets. Whether or not this trend is sustainable is a topic for another day.

3. The Cadillac ATS Attracts The Most New Customers

When it comes to either conquest buyers or new luxury vehicle customers as a whole, the Cadillac ATS seems to be the current entry point. It remains a driver’s choice for a rather fickle C-segment sedan market, while its pricing allows for others to get their feet wet in a more premium vehicle space. It’s far from a sales champion currently, but seems to be an effective tool for attracting customers to the Cadillac brand as a whole.

Seems like you’re nitpicking here. You always do in your comments, so that should be expected.

The + or – of what you refer to will stay neatly tucked away in GM’s reports until at least 2020. Don’t press for information that’s simply not available.

Sales volume is down due to what, exactly? Lower incentives? Vehicles that are more appropriately (higher) priced to build a sustainable customer base? The fact that the market is hot for crossovers right now, which Cadillac currently only has one of?

There’s more to the “why”, and it all results in a better, healthier, and more sustainable Cadillac. Get off your high horse.

Are you suggesting that this article is not “worth reading”? Because to me, it is… and it provides all kinds of numbers, facts, and figures. It just so happens that the figures you want are not available because they are not public/shared.

Yes Cadillac sales are down YTD 2015 compared to 2014 but only a paltry 0.3% (362 units ) which is insignificant with still 2 months to go in the year. Cadillac incidently is up worldwide 4
5% so the $7000 average per unit is mostly net profit compared to last year.

That is impressive by any measure.

If Cadillac can keep the profits rolling in while waiting on the volume surge brought on by new products then corporate GM will be more patient and be more willing to keeping investing.

In full disclosure here the fact is the luxury cars are the most profitable cars in the industry and only trail pick up trucks in profits per unit.

In full disclosure the Luxury cars at companies like GM even at reduced volumes make 50% of the profits from all cars sold.

In full disclosure the fact is even at reduced volume GM is making money with the Cadillac cars. One must consider that it cost no more to develop a Cadillac vs. say a Chevy Cruze. the design and engineering is often the same. The only real increase in cost is content and that is only a fraction of the car. So for the most part where GM may make only a few hundred to a thousand on a Chevy they can make multiple thousands off one Cadillac.

This is why Benz, Audi and BMW do well as does Lexus and Infinity at such low volumes. They all make a lot of money on each model sold. GM and Ford for years was building Cadillac and Lincolns and selling them cheaper but had to move many to make any money if any was made. Today GM has changed that and Lincoln as of now is fighting internally to move to the same program as Cadillac and the others. Some at Ford was wanting to kill them off and replace them with the Platinum series Fords but a contingent fought and has won a stay. At this point they are still fighting as Ford is only willing to compete with the likes of Buick right now. Those at Ford who have the right idea are working to secure a better future but they have yet to gain the needed support.

GM is making money on all the cars and the Escalade is only the frosting on the cake. The XT5 will add much to the coffers at Cadillac very soon too.

Note the past SRX make much more profit than the Terrain and Nox but yet cost little more to build. Luxury is easy money even at low volumes at the higher prices. The higher the price the more profit to be had.

As for numbers GM is not going to give those out. But you can get general numbers on how much it cost to build a car and factor it out yourself if you know what you are doing.

The fact is Cadillac no longer has to discount high volume their way to profits anymore. This is what builds image and future profits.

The Cadillac in the future should not be as common as a Caprice once was. We should not see CTS models in trailer parks and bingo halls.

Snobby? You are damn right as not everyone should be able to own a Cadillac. That is what makes the other brands special as everyone wants one but most can not have one. This is how you build status.

Oh as for the three points it was pretty much well known that younger people buy Cadillac’s in China

That the average transaction price was really up globally as it has been reported.

Finally look at the folks driving the ATS and CTS and they are not old or as old as the Deville drivers once were. People are giving them a chance and it is growing. I have three co workers all under 50 driving new ATS and they love them.

Cadillac is and has been profitable. It is now even moreso thanks to greater economies of scale between ATS and CTS and between the lesser variants of Super Epsilon and the XTS. And that’s not to say anything about the cash cows – the SRX and Escalade.

But again, all of this is missing the forest for the trees. The brand (division) is in the midst of a top-to-bottom revamp. You guys (Wait! and Takealookatmenow) should keep this in mind as you post this negative garbage. The brand has been an also-ran and has been treated as such by GM for at least two decades. The current results are actually impressive given this precious state of affairs.

Wait! and TakeALookatmenow are commenting like you have all the answers, or simply criticize without much other substance. Why don’t you gents (I assume) do something productive and outline:
1. What you don’t like about Cadillac operations, vehicles, strategy, etc. now and into the future (based on all that we know), and
2. How you would address it/fix it

Global sales are up indeed and that’s great. But U.S. Sales are down when competitors sales in the same market are way up. Crossovers are to blame. Whoever was in charge of product and portfolio development strategy 2-4 years ago for Cadillac messed up big time, or didn’t have the resources to execute more crossovers outside of SRX.

Cadillac has already stated that they want to increase their market share . Having high ATP’s is a good thing but to compete in an ever increasing market you are going to have to have atleast one or two models that sell better than the competition . Cadillac can’t build a vehicle for every segment that is out there and sell in limited quantities . That is a recipe for disaster . It costs to much to develope a car and not sell in high numbers from atleast a few cars in the portfolio .
Look at the recent sales of the Escalade , they have fallen off enough that you are going to start seeing commercials for it . That market is now saturated . They enjoyed high ATP’s for a while , now they need to start selling more of these to compete ( volumn ) .
Living in a college town I see that generation buying BMW’s , Audi’s and MB’s and even Lexus . There isnt an ATS or CTS in site . This is where the future of Cadillac rests . The new Engineers or doctors or any of them with a degree , they want something to drive that says ” Look at what I can afford ” ! And from what I can tell , that market segment is looking for a proformance car not a SUV . Its the baby-boomers buying those or the empty nesters . Cadillac needs to do what they do best and that is state of the art luxury cars and not try to sell in every segment out there . They will burn through that 12 B’s fast doing so . Let Buick and Chevy do that . The next BIG thing coming from Cadillac should be the CT7 or 8 . Not a little sub mid sized SUV . That just cheapens the image . Sure build something imbetween the XT5 and Escalade , then come out with the image car that they need so desperately .

You contradict yourself. If they are buying “look what I can afford” cars they are buying badges, nothing else, not performance. By not falling into a trap of over compensating on rebates they are making the brand exclusive compared to the Germans which are moving down market.

Toronto is an extremely competitive luxury market, and I have to admit I am seeing a lot more ATS and CTS on the road. The best part is it’s not just gray-haired old men and ladies driving them. I’m seeing all different groups.